China to give soft loan of $1.5 billion to Pakistan

China is quietly working to provide Pakistan a soft loan of $1.5 billion to overcome its financial crisis in addition to more than $3.7 billion to be invested in the telecom and power generation sectors in the next two to three years, Chinese officials said.

Despite all security issues and financial pressures, China has decided to stand by its two trusted friends — Pakistan and Nigeria — where China will invest more than $4 billion by the end of 2009, they said.

Top Chinese government officials emphasised that both Nigeria and Pakistan were very important countries for China. Many Chinese oil companies are working in the dangerous Niger delta zone of Nigeria, while in Pakistan China is planning to connect its Xingjian province with African countries through the Gwadar Port.

Nigeria was the first country to get a Chinese satellite in orbit and Pakistan will be the second country to use a Chinese telecommunication satellite by 2011. This satellite, named PakSat-IR, will have a lifespan of 15 years and will open new opportunities for foreign investment in Pakistan.